CONSTRUCTION DEFECT DEMAND LETTER
STATE OF SOUTH DAKOTA
NOTICE OF CONSTRUCTION DEFECTS AND DEMAND FOR RELIEF
SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND REGULAR FIRST-CLASS MAIL
[DATE]
[CONTRACTOR/BUILDER NAME]
[ADDRESS]
[CITY, STATE ZIP]
South Dakota Contractor License No.: [LICENSE NUMBER]
Re: NOTICE OF CONSTRUCTION DEFECTS
Property Address: [PROPERTY ADDRESS]
Owner: [OWNER NAME]
Original Contract Date: [DATE]
Substantial Completion Date: [DATE]
Dear Sir or Madam:
This firm represents [OWNER NAME] ("Owner" or "Claimant") regarding construction defects at the above-referenced property. This letter constitutes formal notice of construction defects and a demand for repair or compensation before litigation is commenced.
PLEASE TREAT THIS LETTER AS A FORMAL DEMAND. A TIMELY RESPONSE IS REQUESTED WITHIN THIRTY (30) DAYS.
I. SOUTH DAKOTA-SPECIFIC LEGAL FRAMEWORK
A. South Dakota Construction Law
South Dakota law provides remedies for construction defects through both statutory and common law. Contractor licensing requirements vary by municipality and trade.
B. Statute of Limitations
South Dakota law provides the following limitations periods for construction defect claims:
| Claim Type | Limitations Period | Authority |
|---|---|---|
| Breach of Written Contract | 6 years | SDCL Section 15-2-13(1) |
| Breach of Oral Contract | 6 years | SDCL Section 15-2-13(2) |
| Negligence/Tort | 3 years | SDCL Section 15-2-14(3) |
| Breach of Warranty | 4 years (UCC) | SDCL Section 57A-2-725 |
| Fraud | 6 years from discovery | SDCL Section 15-2-13(6) |
C. Statute of Repose
SDCL Section 15-2-15.2 establishes a ten (10) year statute of repose for improvements to real property, running from substantial completion of the improvement.
D. Implied Warranties in South Dakota
South Dakota recognizes the following implied warranties in residential construction:
-
Implied Warranty of Workmanlike Construction: Builders impliedly warrant that construction will be performed in a workmanlike manner. Wagner v. Cutler (S.D. 1987), 412 N.W.2d 113.
-
Implied Warranty of Habitability: New home builders warrant homes are fit for habitation. Wagner v. Cutler, 412 N.W.2d 113.
E. Contractor Licensing Requirements
South Dakota does not have a statewide general contractor licensing requirement, but many municipalities require contractor registration. Specialized trades (plumbing, electrical) may require state licensing.
II. PROPERTY AND PROJECT INFORMATION
A. Property Description
| Item | Details |
|---|---|
| Property Address | [COMPLETE ADDRESS] |
| County | [COUNTY], South Dakota |
| Property Type | [ ] Single-family home [ ] Condominium [ ] Townhouse [ ] Multi-family |
| Year Built | [YEAR] |
| Square Footage | [SQUARE FEET] |
| Current Owner(s) | [NAME(S)] |
| Date of Purchase | [DATE] |
| Purchase Price | $[AMOUNT] |
B. Project Information
| Item | Details |
|---|---|
| Project Type | [ ] New construction [ ] Remodel [ ] Addition [ ] Repair |
| General Contractor | [NAME] |
| License No. (if applicable) | [NUMBER] |
| Contract Date | [DATE] |
| Contract Amount | $[AMOUNT] |
| Substantial Completion | [DATE] |
| Final Completion | [DATE] |
| Warranty Period | [DESCRIBE] |
C. Parties Involved
General Contractor:
- Name: [NAME]
- License Number (if applicable): [NUMBER]
- Address: [ADDRESS]
- Contact: [PHONE/EMAIL]
Subcontractors: (List all subcontractors whose work is believed defective)
| Trade | Company Name | License No. | Work Performed |
|---|---|---|---|
| [TRADE] | [NAME] | [NUMBER] | [DESCRIPTION] |
| [TRADE] | [NAME] | [NUMBER] | [DESCRIPTION] |
III. DESCRIPTION OF DEFECTS
The following is a detailed description of each claimed construction defect:
DEFECT #1: [TITLE - e.g., FOUNDATION CRACKING]
Location: [Specific location within the property]
Description: [Detailed description of the defect, including how it manifests, when it was discovered, and any progression]
Building Components Affected:
[ ] Foundation/Slab [ ] Framing [ ] Roofing [ ] Exterior walls/Siding [ ] Windows/Doors
[ ] Plumbing [ ] Electrical [ ] HVAC [ ] Insulation [ ] Drywall/Interior finishes
[ ] Flooring [ ] Waterproofing [ ] Drainage [ ] Other: [SPECIFY]
Evidence Supporting Defect:
[Describe supporting evidence - expert reports, photographs, testing results, etc.]
Standards Violated:
[ ] South Dakota Building Standards
[ ] Manufacturer's Installation Instructions
[ ] Industry Standards (IRC, IBC, ASTM)
[ ] Contract Specifications
[ ] Implied Warranty of Workmanship
[ ] Implied Warranty of Habitability
Date First Observed: [DATE]
Estimated Cost to Repair: $[AMOUNT]
DEFECT #2: [TITLE]
[REPEAT FORMAT ABOVE FOR EACH DEFECT]
IV. SUMMARY OF DEFECTS AND DAMAGES
| Defect | Location | Est. Repair Cost | Related Damages |
|---|---|---|---|
| [DEFECT 1] | [LOCATION] | $[AMOUNT] | $[AMOUNT] |
| [DEFECT 2] | [LOCATION] | $[AMOUNT] | $[AMOUNT] |
| SUBTOTAL - Repair Costs | $[AMOUNT] | ||
| Consequential Damages | $[AMOUNT] | ||
| Expert/Investigation Costs | $[AMOUNT] | ||
| Temporary Housing | $[AMOUNT] | ||
| TOTAL ESTIMATED DAMAGES | $[AMOUNT] |
V. LEGAL BASIS FOR CLAIMS
A. Breach of Contract
You failed to perform construction in accordance with the contract terms, plans, specifications, and applicable building codes.
B. Breach of Express Warranty
You provided express warranties regarding quality and durability of construction which you have breached.
C. Breach of Implied Warranty of Habitability
Under South Dakota law, builders impliedly warrant that new homes are fit for habitation. Wagner v. Cutler, 412 N.W.2d 113 (S.D. 1987).
D. Breach of Implied Warranty of Workmanlike Construction
Under South Dakota law, construction must be performed in a workmanlike manner. Wagner v. Cutler, 412 N.W.2d 113 (S.D. 1987).
E. Negligence
You owed a duty of care to perform construction in accordance with the applicable standard of care and breached that duty.
F. Violation of Building Codes
The construction violates applicable building codes and/or local building codes.
VI. DEMAND FOR INSPECTION ACCESS
We hereby offer you the opportunity to inspect the property. To schedule an inspection:
- Contact our office in writing within fifteen (15) days
- Propose inspection dates during reasonable business hours
- Identify all persons who will attend
- Identify any experts who will participate
Contact Information:
[LAW FIRM NAME]
[ADDRESS]
[PHONE]
[EMAIL]
VII. PRESERVATION OF EVIDENCE
You are hereby directed to preserve all documents and materials relating to the construction, including:
- All contracts and subcontracts
- Plans, specifications, and drawings
- Inspection reports and quality control records
- Correspondence with owner and subcontractors
- Photographs taken during construction
- Daily logs and progress reports
- Warranties from manufacturers
- Insurance policies and certificates
Spoliation Warning: Failure to preserve evidence may result in adverse inference instructions and sanctions.
VIII. SETTLEMENT DEMAND
To resolve this matter without litigation, we demand:
Option A - Repair by Contractor:
1. Complete repair of all identified defects within [NUMBER] days
2. All repairs warranted for minimum of [NUMBER] years
3. Payment of investigation and expert costs: $[AMOUNT]
4. Payment of attorney's fees incurred to date: $[AMOUNT]
Option B - Monetary Settlement:
Payment of $[AMOUNT] within 30 days.
IX. CONCLUSION
Please respond in writing within 30 days of receipt of this notice. If we do not receive a timely response, our client will proceed with litigation without further notice.
Respectfully submitted,
[LAW FIRM NAME]
By: _________________________________
[ATTORNEY NAME]
South Dakota State Bar No. [NUMBER]
[ADDRESS]
[CITY, STATE ZIP]
[TELEPHONE]
[EMAIL]
Attorneys for [OWNER NAME]
ENCLOSURES:
[ ] Photographs of defects
[ ] Expert report(s)
[ ] Repair estimates
[ ] Copy of construction contract
[ ] Correspondence history
cc: [OWNER NAME]
[INSURANCE CARRIER]
SOUTH DAKOTA-SPECIFIC PRACTICE NOTES
Statute of Repose (SDCL Section 15-2-15.2):
- 10-year repose period for improvements to real property
- Runs from substantial completion of the improvement
- Applies to all claims arising from construction
Implied Warranties:
- Warranty of habitability recognized for new residential construction
- Warranty of workmanlike construction applies to all work
- Wagner v. Cutler is the leading case
- May extend to subsequent purchasers
Contractor Licensing:
- No statewide general contractor licensing requirement
- Check local municipality for registration requirements
- Electrical and plumbing contractors may need state licenses
- Verify any required licenses with local authorities
Discovery Rule:
- Statute of limitations may be tolled until defect discovered or should have been discovered
- Applies to latent defects
- Daugaard v. Baltic Co-op. Bldg. Supply Ass'n, 349 N.W.2d 419 (S.D. 1984)
Economic Loss Rule:
- South Dakota applies the economic loss rule
- Contract claims typically required for purely economic losses
- Kreisers Inc. v. First Dakota Title Ltd. Partnership, 2014 S.D. 56
This template is for informational purposes only and does not constitute legal advice. Consult a licensed South Dakota attorney before use.